The EU removes tax exemption and taxes ultra-fast fashion: a measure impacting Shein and Temu from 2026

Starting from July 2026, the European Union (EU) will eliminate the tax exemption for packages under 150 euros coming from outside the community block. These shipments will be subject to a fixed tariff of 3 euros per product, a measure that directly impacts ultra-fast fashion platforms like Shein and Temu, which base their model on massive sales of cheap clothing sent directly to consumers.

Reactions from Greenpeace

The environmental organization Greenpeace welcomed the decision as a curb on consumerism, although it warned that it is insufficient to transform the fast fashion business model. According to the NGO, this system is sustained by:

  • Massive and polluting production.
  • Labor exploitation, with women and children in precarious conditions.
  • Use of chemicals banned in Europe, which violate the REACH regulation.

Greenpeace considers it positive that shipments are taxed, but criticizes that the measure mainly affects individual consumers and not the companies responsible for the environmental and social impact.

Details of the new regulation

  • Elimination of the exemption: all packages under 150 euros coming from outside the EU will pay 3 euros per product.
  • Declared objective: to curb the rise of fast fashion e-commerce and limit the entry of garments with hazardous chemicals.
  • Limitations: the measure does not affect fast fashion brands that produce within the EU, nor does it guarantee the elimination of polluting textiles.
ultra-fast fashion
Discover how the new regulation will affect ultra-fast fashion and its business model in Europe.

Criticisms and proposals for change

Greenpeace warns that, although the measure may act as a deterrent against compulsive buying and the famous clothing hauls, it does not address the structural problem. The organization demands that public administrations:

  • Require fast fashion to reduce production by up to 50%.
  • Improve the quality of products and promote local and localized production.
  • Implement regulations that promote the circular economy, slow fashion, repairability, and the second-hand market.

Expected impact

The measure may reduce the appeal of low-cost international purchases, but it does not stop the entry of garments with hazardous chemicals, as Greenpeace recently evidenced in analyses of clothing sent to Spain by Shein. Furthermore, by placing the burden on consumers, its effectiveness in combating the global impact of fast fashion is limited.

The EU’s decision marks an important step towards regulating ultra-fast fashion, but leaves open the discussion on how to hold companies directly accountable. For Greenpeace and other organizations, real change will come from policies that transform textile production towards a sustainable, fair, and circular model.

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